Study Numbers

For risk call trades Friday here's what we alerted: "Pay to prior day close, following futures. Best buy at 13.10 or less.

Sell to Resistance levels same day." The position hit buy lows of 13.00 and sell highs of up to 15.50, same day. We continue to hold the hedge April put.
Let's study numbers:
The Dow hit 10,479 as a theoretical high Friday
The Dow hit 10,299 as a theoretical low Friday
The all important SPX has two strong resistance areas, 1076 and more importantly 1100, and the market closed up to 1109.

What is important is the study of our Dow projections to see next tops,and more importantly, what could be next bottoms, if the bears are right that we are approaching every kind of technical top imaginable.
From the whipsaw we have seen this past week I can honestly say that the market is both overbought and oversold.

And a bit from our Blue Chip Options commentary:

It is of interest that the market is overbought on the daily charts, but still oversold on the weekly charts.


Bulls would hope at market opening for a downside of no lower than 1076 on the SPX, and a rebound to 10,640 area.


Bears believe it is time to short the market.


The USD is gaining. This signals that the Federal Reserve may be closer to tightening monetary policy gave the dollar a renewed boost.

Add to this that U.S. economic data continues to outperform and real interest rates are shooting higher than Europe.


Now it is the Euro that shows levels of concern.


What you’ve read above is our real gauge on the market. To Floyd, unemployment at 10% is a natural reaction to the severe recession we’ve had and that our import ratios remain our own doing.